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Notes to Accounts of Dabur India Ltd.

Mar 31, 2015

1. Company Information

Dabur India Limited (the ''Company'') is a domestic public limited company and is listed on the Bombay Stock Exchange Ltd. [BSE], National Stock Exchange of India Ltd. [NSE] and Metropolitan Stock Exchange of India Ltd. [mSXI] (formerly known as MCX). The company is one of the leading FMCG players dealing in consumer care and food products. The Company has manufacturing facilities across the length & breadth of the country and Research and Development center in U.P. (Sahibabad), selling arrangements being primarily in India through independent distributors except for institutional sales which are handled directly by the company.

b. Rights, preference and restrictions attached to Equity Shares

i. The Company has one class of equity shares having a par value of Re.1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

ii. Shares of the company are ordinarily transferable provided:

a. Instrument of transfer is in form prescribed under the act & duly stamped and executed by/on behalf of transferor and transferee.

b. Transferee consenting or replying affirmatively within specified period of his receipt of notice under Section 56(1) of Companies Act, 2013 issued by the company in respect of application of transfer of registration of shares made by the transferor.

c. Transferee is not of unsound mind.

d. Company does not have any lien on shares under application of transfer.

Term therein:

Options granted to an employee are subject to cancellation under circumstances of his cessation of employment with the company on or before vesting date.

Notes:

1. There is no default in repayment of principal loan or interest thereon.

2. No Guarantee Bond has been furnished against any loan.

3. Cash Credits are secured by hypothecation of inventories and book debts to bankers in consortium ranking pari passu among Punjab National Bank, Standard Chartered Bank, Hongkong & Shanghai Banking Corporation Ltd., Royal Bank of Scotland, IDBI Bank Ltd., Citi Bank NA, HDFC Bank Ltd., Bank of Nova Scotia and Bank of Tokyo Mitsubishi UFJ Ltd.

Note:

1. Addition to the above Tangible Fixed Assets includes 0.94 (Previous year 1.91) incurred at company''s inhouse R&D facilities at Sahibabad.

2. Leasehold Land relates to:

a) 94620 sq yards of land at Sahibabad taken on lease for a period of 90 years in the year of 1972.

b) 1059 sq yards of land at Sahibabad taken on lease for a period of 90 years in the year of 1985.

c) 6508 sq mtrs of land at Alwar taken on lease for a period of 99 years in the year of 1981.

d) 58 Kanals of land at Jammu taken on lease for a period of 90 years in the year of 2002.

e) 294.82 Katha of land at Pithampur taken on lease for a period of 30 years in the year of 1997.

f) 7972 sq mtrs of land at Nashik taken on lease for a period of 95 years in the year of 1990.

g) 3000 sq mtrs of land at Kaushambi taken on lease for a period of 90 years in the year of 1996.

h) 16122.35 sq mtrs of land at Kaushambi taken on lease for a period of 30 years in the year of 1997.

i) 100.53 acres of land at Sandila taken on lease for a period of 99 years in the year of 1999.

j) 3640 sq mtrs of land at Mumbai taken on lease for a period of 99 years in the year of 1964.

k) 67968.75 sq mtrs of land at Rudrapur taken on lease for a period of 90 years in the year of 2004.

l) 18000 sq mtrs of land at Pant Nagar taken on lease for a period of 81 years in the year 2014.

m) All lease arrangements are of the nature of operating lease.

2. Depreciation charge amounting to Rs. 71.49 (PY: Rs. 53.91) allocated between statement of Profit and Loss Rs. 65.97 (PY: Rs. 53.91) and against Surplus Rs. 5.57 (PY: Nil), the latter being towards charging off overaged assets under new dispensation of Act.

3. Contingent Liabilities As at As at March 31,2015 March 31,2014

Claims against the company not acknowledged as debts:

1. Civil cases filed against the company 7.93 21.78

2. Claims by employees 0.86 0.72

3. Excise duty/service tax matters 133.24 136.53

4. Sales tax matters 44.89 17.91

5. Income tax matters 0.37 9.35

Total 187.29 186.29

i. Resulting outflows against above liabilities, pending before Sales Tax DC/Tribunal/CCT''s, if mature, are expected to be in succeeding financial year.

ii. Withdrawal of provision relates to crystallization of liability in actual term & subsequent payment made by company in relevant context.

iii. Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.

iv. Company presumes remote risk possibility of further cash outflow pertaining to contingent liabilities and commitments listed in point 21 & 22 above.

G. The basis used for determination of expected rate of return is average return on long term investment in Government bonds.

H. The estimate of future salary increase take in-to account regular increment , promotional increases and increment.

I. Demographics assumptions take into account mortality factor as per IALM (2006-08) ultimate criteria, employees and normal retirement age at 58.

J. Particulars on planned assets have been ascertained on the basis of last confirmation from Insurance Company.

K. CY- Current year, PY - Previous year

ii) Lease rent debited to Profit & Loss account of the year Rs 1.03 (Previous year Rs 0.99).

iii) Irrevocable lease agreement relates to flat, machine & vehicle, lease period not exceeding five years in respect of any arrangement

iv) Figures in bracket relates to previous year

50. Investment in Joint Venture Information (Pursuant to AS-27)

(a) The company is a party to joint venture agreement controlling the management of Forum 1 Aviation Private Limited, a domestic Jointly Controlled Corporate Entity (JCE) with part of its operation akin to jointly controlled operation, the main object of the JCE being maintenance of aircraft for use of venturers or otherwise. The contributions of venturers are towards capital build up of the JCE and periodic contribution towards cost of maintenance of aircraft. Variable component of cost of maintenance is borne by user of the aircraft in proportion to their actual usage and fixed component is shared by all the venturers in proportion to their capital contribution. The participation of the venturers in the affairs of the management of the JCE is through representation in the composition of Board of Directors as agreed in shareholder''s agreement.

(b) Share of the company in assets, outside liability, net worth, income and expenses not being accounted for herein works out to Rs 9.67 (Previous year 10.33), Rs 1.20 (Previous year 2.63), Rs 8.47 (Previous year 7.70), Rs 5.42 (Previous year 4.84) and Rs 4.63 (Previous year 4.12) respectively in respect of year under audit as per un-audited accounts of the JCE.

(c) Stake of the company in terms of percentage of total subscribed and paid up capital of JCE is 16.67%. Said amount Rs 4.77 (Rs 4.77) appears under investment head in balance sheet of the company.

(d) Company''s commitment towards revenue expenditure of the JCE amounting to Rs 5.05 (Previous year Rs 4.68) has been charged to profit and loss account under the head general charges.

(e) The company has furnished guarantee bond for Rs 7.14 (previous year Rs 7.14) in respect of borrowing availed by the JCE for acquisition of aircraft which forms part of point 22 of these notes.

(f) No income from said investment, unless realized in cash, is recognized in this standalone account.

Notes:

A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. Rs. 410.05 (Rs. 384.59).

B. Item referred to in 2 above includes Sales to Dabur International Ltd., Naturelle LLC, Asian Consumer Care Pakistan (Pvt) Ltd., Asian Consumer Care Ltd. Rs. 19.17, Rs. 23.85, Rs. 5.41, Rs. 12.39 respectively (Rs. 16.58, Rs. 26.86, Rs. 16.95,10.11 respectively).

C. Item referred to in 3 above relates to royalty paid to Dermoviva Skin Essentials Inc. Rs. 0.12 (Rs. 0.12).

D. Item referred to in 4 above relates to joint venture expenses paid to Forum 1 Aviation Pvt. Ltd. Rs. 5.05 (Rs. 4.68).

E. Item referred to in 8 above relates to ESOP given to Dabur International Ltd. Rs. 5.85 (Rs. 2.66).

F. Item referred to in 9 above relates to interest received on security deposit from Forum 1 Aviation Pvt. Ltd. Rs. 0.02 (Rs. 0.02).

G. Item referred to in 11 above relates to loan given to H & B stores Ltd. Rs. Nil (Rs. 0.90).

H. Item referred to in 12 above relates to loan repaid by H & B stores Ltd. Rs. Nil (Rs. 2.10).

I. Item referred to in 13 above relates to investment in equity shares of Forum 1 Aviation Pvt. Ltd. Rs. Nil (Rs. 0.21) and H & B Stores Ltd. Rs. 4.00 (Rs. 5.20).

J. Figures in bracket relate to previous year.

4. The company''s freehold land situated at Sahibabad measuring about 7.58 acres was acquired by U.P. Government under Land Acquisition Act and the State Government had allotted and given possession of about 4.72 acres of land on lease to the Company in lieu of acquired land. The company has filed a claim for compensation of Rs 5.72 before the Office of Special Land Acquisition Officer, Ghaziabad against the land so acquired. However, keeping in view the generally accepted accounting practice, the said claim has not been considered in the books of accounts.

5. Loans and Advances include Rs. 0.49 (Previous year Rs. 0.49 ) paid by the Company to Excise authorities on behalf of Sharda Boiron Laboratories Limited, now known as SBL Limited, in respect of excise duty demand of Rs 0.68 raised by the District Excise Officer, Ghaziabad, against the Company and Sharda Boiron Laboratories Limited. The Hon''ble Supreme Court of India had concurred with the order of the District Excise Officer, Ghaziabad.

The Company had filed the review petition before Division Bench of the Hon''ble Supreme Court of India, which was also decided against the Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the Company and as per the terms and conditions of the contract executed with them, the recovery proceedings have been initiated by the Company against Sharda Boiron Laboratories Limited for Rs. 0.49 by invoking the arbitration clause. The matter is pending before Hon''ble High Court of Delhi for the appointment of an arbitrator. The balance amount of Rs. 0.21 along with interest demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities. During the year 1991-92 the company had received a refund of Rs 0.06, pursuant to the decision of Hon''ble Supreme Court in this regard. Necessary adjustments in respect of recovery/refund will be made as per the arbitration proceedings.

6. Amount due to Micro & Small enterprises under MSMED Act, 2006 is Rs. 5.07 (previous year Rs. 7.89). Identification of such enterprises has been made on the basis of their disclosure in correspondences, bills to the effect as mandated for them. There was neither any default nor any delay in payment made to such enterprises, credit terms where of were within period prescribed under statute

7. Sale of Services Rs. 0.10 (previous year Rs. 0.17) relates to hiring charges paid by customers for using Company''s machines.

8. Exchange gain works out to Rs. 5.07 (Previous Year Rs. 9.55) and exchange loss Rs. 8.79 (Previous year Rs. 16.41) and their net impact have been debited to Profit & Loss Account under the head "Finance Cost".

9. Exceptional item relates to investment in H & B Stores Limited, a wholly owned subsidiary, written off during the year on account of Honourable High Court Delhi approving investee''s application made under Section 100(1)(b) of Companies Act, 1956 for reduction of share capital against cancellation of 239568708 numbers of equity shares of Re. 1 each not being represented by available assets.

10. Change in accounting practice

Following change in assumption of lifespan of fixed assets under Schedule II of Companies Act, 2013, over aged fixed assets have been reduced to their residual values with consequent reduction amounting to Rs. 5.57 (Net off Rs. 1.89 towards deferred tax impact, thereon) has been charged to surplus under "Reserves and Surplus" head in balance sheet. In addition to above, remaining items of fixed assets have been subjected to depreciation charge at rates which reduce them to their residual values under their revised lifespan which led to decrease in profit by Rs. 3.88 vis-a-vis previous year''s practice."

11. a. Figures for the previous year have been rearranged/regrouped as and when necessary in terms of current year''s grouping. b. Figures are rounded off to nearest rupees in crores.


Mar 31, 2014

1. COMPANY INFORMATION

Dabur India Limited (the ''Company'') is a domestic public limited company and is listed on the Bombay Stock Exchange Limited [BSE], National Stock Exchange of India Limited [NSE] and MCX Stock Exchange Limited [MCX]. The company is one of the leading FMCG players dealing in Consumer Care and Food Products. The Company has manufacturing facilities across the length & breadth of the country and Research and Development Center in U.P. (Sahibabad), selling arrangements being primarily in India through independent distributors except for institutional sales which are handled directly by the company.

2. CONTINGENT LIABILITIES

Claims against the company not acknowledged as debts:

(1) Civil cases filed against the company 21.78 7.60

(2) Claims by employees 0.72 0.58

(3) Excise duty/service tax matters 136.53 76.61

(4) Sales tax matters 17.91 12.72

(5) Income tax matters 9.35 0.21

Total 186.29 97.72

3. CHANGE IN ACCOUNTING PRACTICE

Pursuant to the withdrawal of mandatory status of AS-30, 31 & 32, the applicability of the same has been discontinued in current financial year. As a result, investments held for sale in non-current category have been accounted for at cost and current investments at lower of cost and market value. This contributed to reduction in profit (shown under extra-ordinary item) and value of current investment by Rs. 0.72 each, also there is decrease in value of non-current investment by Rs. 0.66 and net worth by Rs. 1.38 for the current period ended 31st March''14.

4. INVESTMENT IN JOINT VENTURE INFORMATION (PURSUANT TO AS-27)

(a) The company is a party to joint venture agreement controlling the management of Forum 1 Aviation Limited, a domestic Jointly Controlled Corporate Entity (JCE) with part of its operation akin to jointly controlled operation , the main object of the JCE being maintenance of aircraft for use of venturers or otherwise. The contributions of venturers are towards capital build up of the JCE and periodic contribution towards cost of maintenance of aircraft. Variable component of cost of maintenance is borne by user of the aircraft in proportion to their actual usage and fixed component is shared by all the venturers in proportion to their capital contribution. The participation of the venturers in the affairs of the management of the JCE is through representation in the composition of Board of Directors as agreed in shareholder''s agreement.

(b) Share of the company in assets, outside liability, net worth, income and expenses not being accounted for herein works out to Rs.10.33 (Previous year Rs. 9.52), Rs. 2.63 (Previous year Rs. 3.47), Rs. 7.70 (Previous year Rs. 6.05), Rs.4.84 (Previous year Rs. 5.26) and Rs. 4.12 (Previous year Rs. 4.42) respectively in respect of year under audit as per un-audited accounts of the JCE.

(c) Stake of the company in terms of percentage of total subscribed and paid up capital of JCE is 16.67%. Said amount Rs.4.77 C 4.56) appears under investment head in balance sheet of the company.

(d) Company''s commitment towards revenue expenditure of the JCE amounting to Rs.4.68 (Previous year Rs.5.42) has been charged to profit and loss account under the head general charges.

(e) The company has furnished guarantee bond for Rs. 7.14 (previous year Rs. 7.14) in respect of borrowing availed by the JCE for acquisition of aircraft which forms part of point 23 of these notes.

(f) No income from said investment, unless realized in cash, is recognized in this stand alone account.

5. A. RELATED PARTY DISCLOSURES (AS REQUIRED UNDER AS-18)

(a) Related parties controlled directly:-

H & B Stores Limited - (Domestic Wholly Owned Subsidiary)

Dabur International Ltd., UAE - (Foreign Wholly Owned Subsidiary)

(b) Related parties controlled indirectly:-

Dermoviva Skin Essentials Inc. - (Foreign wholly Owned Subsidiary)

Asian Consumer Care Pvt. Ltd., Dhaka - (Foreign Subsidiary)

Dabur Nepal Pvt. Ltd., Nepal - (Foreign Subsidiary)

Dabur Egypt Ltd., Egypt - (Foreign Wholly Owned Subsidiary)

Dabur (UK) Ltd., UK - (Foreign Wholly Owned Subsidiary)

African Consumer Care Limited, Nigeria - (Foreign Wholly Owned Subsidiary)

Asian Consumer Care Pakistan (Pvt.) Ltd., Pakistan - (Foreign Subsidiary)

Naturelle LLC, UAE - (Foreign Wholly Owned Subsidiary)

Dabur Egypt Trading Ltd., Egypt - (Foreign Wholly Owned Subsidiary)

Hobi Kozmetik, Turkey - (Foreign Wholly Owned Subsidiary)

Ra Pazarlama, Turkey - (Foreign Wholly Owned Subsidiary)

Namaste Laboratories LLC, US - (Foreign Wholly Owned Subsidiary)

Hair Rejuvenation & Revitalization Nigeria Ltd. - (Foreign Wholly Owned Subsidiary)

Healing Hair Laboratories International LLC, USA - (Foreign Wholly Owned Subsidiary)

Urban Laboratories International LLC, USA - (Foreign Wholly Owned Subsidiary)

Dabur Lanka (Pvt.) Ltd, Sri Lanka - (Foreign Wholly Owned Subsidiary)

Namaste Cosmeticos Ltda, Brazil - (Foreign Wholly Owned Subsidiary)

Dabur Consumer Care (Pvt) Ltd, Sri Lanka - (Foreign Wholly Owned Subsidiary)

Dabur Tunisie, Tunisia - (Foreign Wholly Owned Subsidiary)

(c) Other related parties in transaction with the company:

(I) Joint venture /Partnership : Forum 1 Aviation Limited

(II) Key Management Personnel : (Whole Time Directors)

1. P D Narang 2. Sunil Duggal

6. The company''s freehold land situated at Sahibabad measuring about 7.58 acres was acquired by U.P. Government under Land Acquisition Act and the State Government had allotted and given possession of about 4.72 acres of land on lease to the Company in lieu of acquired land. The company has filed a claim for compensation of Rs. 5.72 before the Office of Special Land Acquisition Officer, Ghaziabad against the land so acquired. However, keeping in view the generally accepted accounting practice, the said claim has not been considered in the books of accounts.

7. Loans and Advances include Rs. 0.49 (Previous year Rs. 0.49 ) paid by the Company to Excise authorities on behalf of Sharda Boiron Laboratories Limited, now known as SBL Limited, in respect of excise duty demand of Rs. 0.68 raised by the District Excise Officer, Ghaziabad, against the Company and Sharda Boiron Laboratories Limited. The Hon''ble Supreme Court of India had concurred with the order of the District Excise Officer, Ghaziabad.

The Company had filed the review petition before Division Bench of the Hon''ble Supreme Court of India, which was also decided against the Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the Company and as per the terms and conditions of the contract executed with them, the recovery proceedings have been initiated by the Company against Sharda Boiron Laboratories Limited for Rs. 0.49 by invoking the arbitration clause. The matter is pending before Hon''ble High Court of Delhi for the appointment of an arbitrator. The balance amount of Rs. 0.21 along with interest demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities. During the year 1991-92 the company had received a refund of Rs. 0.06, pursuant to the decision of Hon''ble Supreme Court in this regard.

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8. Amount due to Micro & Small enterprises under MSMED Act, 2006 is Rs. 7.89 (previous year Rs. 4.75). Identification of such enterprises has been made on the basis of their disclosure in correspondences, bills to the effect as mandated for them. There was neither any default nor any delay in payment made to such enterprises, credit terms where of were within period prescribed under statute.

9. Sale of Services Rs. 0.17 (previous year Rs. 0.30) relates to hiring charges paid by customers for using Company''s machines.

10. Exchange gain works out to Rs. 9.55 (Previous Year Rs. 5.74) and exchange loss Rs. 16.41 (Previous year Rs. 9.94) and their net impact have been debited to Profit & Loss Account under the head "Finance Cost".

11. Pursuant to the purchase agreement executed by the company for acquisition of a unit under a deal of slump sale involving consideration money of Rs. 15, it inherited fixed assets worth Rs. 14.67 and other noncurrent assets worth Rs. 0.18, current assets worth Rs. 0.24 and current liabilities for amounting to Rs. 0.09 from one of its'' contract manufacturers situated at Plot no.16, Sector-2, II E, Pantnagar, Uttarakhand.

12. (a) Figures for the previous year have been rearranged/ regrouped as and when necessary in terms of current year''s grouping.

(b) Figures are rounded off to nearest rupees in crores.


Mar 31, 2013

1. COMPANY INFORMATION

Dabur India Limited (the ''Company'') is a domestic public limited company and is listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). The company is one of the leading FMCG players dealing in consumer care and food products. The Company has manufacturing facilities across the length & breadth of the country and Research and Development center in U.P. (Sahibabad), selling arrangements being primarily in India through independent distributors except for institutional sales which are handled directly by the company.

2. EXTRA ORDINARY ITEM

During the current year extraordinary item is Nil. Same for the previous year was Rs. 4489 relating to investment in H&B Stores limited a wholly owned subsidiary written off on account of Hon''ble High Court Delhi approving investee''s application for reduction for share capital against cancellation of 448938127 number of equity shares of Rs. 1 each not being represented by tangible/ intangible assets.

A. The basis used for determination of expected rate of return is average return on long term investment in Government bonds

B. The estimate of future salary increase take into account regular increment, promotional increases and Inflationary consequence over price index.

C. Demographics assumptions take into account mortality factor as per LIC (1994-96) ultimate criteria, employees and normal retirement age at 58.

D. Particulars on planned assets have been ascertained on the basis of last confirmation from Insurance Company.

E. CY- Current Year, PY - Previous Year 50. AS 30, 31 & 32

a) Considering mandatory status of AS-30 as conferred by ICAI, continuing upto the point of approval of accounts of previous year, company adopted relevant standard in said year. Notwithstanding subsequent modification of mandatory status on AS-30 by ICAI, the company continues to follow AS-30 for treatment of financial instruments, financial assets & liabilities as relevant standard, has been recommended for adoption by ICAI and is akin to International Accounting Standard with ability to express the affairs of its jurisdiction in relatively realistic perspective of true and fairness of accounts.

b) Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not being receivable/ payable in short term context), call for measurements at amortized value unless amortized value does not materially differ from unamortized value or assets /liabilities are held at floating rate of interest.

c) Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on date, hereby described as amortized value, has been considered on the basis of appropriate Government Bond rate ruling as on 31-03-2013 which is 7.95 % as against 8.4% ruling as on 31-03-2012. Such benchmarking of effective rate is attributed to expected cognizance taken by government of the market risk, commodity price index, foreign exchange reserve, inflationary & deflationary impact on internal rates & cyclic/non cyclic fluctuations in fiscal & monetary system for the purpose of arriving at the rate of bond.

e) Unrealized hedging loss forming part of financial assets of Rs. 56 (Rs. 53) against off balance sheet exposure appears in the current liabilities in the balance sheet.

f) Value of equity instruments, financial assets not carried at fair value except for those having negligible impact or bearing floating rate of interest.

Rs. 107 (Rs. 107) towards non current investment

Rs. 18401 (Rs. 3000) of term deposit with bank maturing little after one year

g) All financial assets and financial liabilities, not being referred to in above table, being short term in nature and not tradable in primary or secondary market, have been carried at unamortized cost.

h) The company has no exposure involving credit risk included in loan or receivable.

i) Rs. 8 (Rs. 8) of fixed deposits are pledged with government authorities towards excise bond.

3. INVESTMENT IN JOINT VENTURE INFORMATION (pursuant to AS-27)

(a) The company is a party to joint venture agreement controlling the management of Forum 1 Aviation Limited, a domestic jointly controlled corporate entity (JCE) with part of its operation akin to jointly controlled operation , the main object of the JCE being maintenance of aircraft for use of venturers or otherwise. The contributions of venturers are towards capital build up of the JCE and periodic contribution towards cost of maintenance of air craft. Variable component of cost of maintenance is borne by user of the aircraft in proportion to their actual usage and fixed component is shared by all the venturers in proportion to their capital contribution. The participation of the venturers in the affairs of the management of the JCE is through representation in the composition of Board of Directors as agreed in share holder''s agreement.

(b) Share of the company in assets, outside liability, net worth, income and expenses not being accounted for herein works out to Rs. 952 (Previous year Rs. 1011), Rs. 347 (Previous year Rs. 441), Rs. 605 (Previous year Rs. 114), Rs. 526 (Previous year Rs. 396) and Rs. 442 (Previous year Rs. 362) respectively in respect of year under audit as per un-audited accounts of the JCE.

(c) Stake of the company in terms of percentage of total subscribed and paid up capital of JCE is 14.28%. Said amount Rs. 456 (Rs. 456) appears under investment head in balance sheet of the company.

(d) Company''s commitment towards revenue expenditure of the JCE amounting to Rs. 542 (Previous year Rs. 439) has been charged to profit and loss account under the head general charges.

(e) The company has furnished guarantee bond for Rs. 714 (previous year Rs. 714) in respect of borrowing availed by the JCE for acquisition of aircraft which forms part of point 23 of these notes.

(f) No income from said investment, unless realized in cash, is recognized in this stand alone account.

4. A. RELATED PARTY DISCLOSURES

Related party disclosures as required under AS-18:

(a) Related parties where control exists:

H & B Stores Limited - (Domestic Wholly Owned Subsidiary)

Dermoviva Skin Essentials Inc - (Foreign wholly Owned Subsidiary)

Asian Consumer care Pvt. Ltd., Dhaka - (Foreign Subsidiary)

Dabur Nepal Pvt. Ltd., Nepal - (Foreign Subsidiary)

Dabur Egypt Ltd., Egypt - (Foreign Wholly Owned Subsidiary)

Dabur (UK) Ltd., UK - (Foreign Wholly Owned Subsidiary)

Dabur International Ltd., UAE - (Foreign Wholly Owned Subsidiary)

Weikfield International (UAE) LLC - (Foreign Subsidiary)

African Consumer care Limited, Nigeria - (Foreign Wholly Owned Subsidiary)

Asian Consumer care Pakistan (Pvt.) Ltd., Pakistan - (Foreign Subsidiary)

Naturelle LLC, UAE - (Foreign Wholly Owned Subsidiary)

Dabur Egypt Trading Ltd., Egypt - (Foreign Wholly Owned Subsidiary)

Hobi Kozmetik - (Foreign Wholly Owned Subsidiary)

Ra Pazarlama - (Foreign Wholly Owned Subsidiary)

Namaste Laboratories LLC, US - (Foreign Wholly Owned Subsidiary)

Hair Rejuvenation & Revitalization Nigeria Ltd. - (Foreign Wholly Owned Subsidiary)

Healing Hair Lab International LLC, USA - (Foreign Wholly Owned Subsidiary)

Urban Lab International LLC, USA - (Foreign Wholly Owned Subsidiary)

Dabur Lanka (Pvt.) Ltd, Sri Lanka - (Foreign Wholly Owned Subsidiary)

Namaste Cosmeticos Ltda, Brazil - (Foreign Wholly Owned Subsidiary)

(b) Other related parties in transaction with the company:

(i) Joint venture /Partnership Forum 1 Aviation Limited

(ii) Key management personnel (Whole time directors)

1. P D Narang

2. Sunil Duggal

(iii) Entities over which Key Management Personnel are able to exercise significant influence:

None

A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. Rs.30,926 (Rs. 29,451)

B. Item referred to in 2 above includes Sales to Dabur International Ltd, African Consumer Care Ltd. , Naturelle LLC, Asian Consumer Care Pakistan (Pvt) Ltd., Asian Consumer care Ltd. Rs. 935, Rs. 839, Rs. 2,222, Rs. 846 and Rs. 667 respectively (Rs. 774, Rs. 540, Rs. 1,448, Rs. 805 and Rs. 583 respectively)

C. Items referred to in 3 above relates to royalty paid to Dermoviva Skin Essentials Inc Rs. 11 (Rs. 10)

D. Items referred to in 4 above relates to joint venture expenses paid to Forum 1 Aviation Ltd. Rs. 542 (Rs. 439)

E. Items referred to in 5 above includes Interest received on loan given to Dermoviva Skin Essentials Inc Rs. Nil (Rs. 9)

F. Items referred to in 6 above relates to remuneration paid to Sunil Duggal & P D Narang Rs. 554 & Rs. 555 respectively (Rs. 507 & Rs. 508 respectively)

G. Items referred to in 8 above relates to interest paid on security deposit from Forum 1 Aviation Ltd. Rs. 305 (Rs. 228)

H. Items referred to in 9 above relates to loan given to H&B Stores Ltd. Rs. 900 (Rs. 1,600)

I. Items referred to in 10 above relates to loan repaid by H&B stores Ltd. by converting it into equity at par

J. Item referred to in 11 above relates to equity issued by H&B Stores Ltd. by converting loan into equity Rs. 3,430 (Rs. Nil)

K. Figures in bracket relate to Previous year.

5. The company''s freehold land situated at Sahibabad measuring about 7.58 acres was acquired by U.P. Government under Land Acquisition Act and the State Government had allotted and given possession of about 4.72 acres of land on lease to the Company in lieu of acquired land. The company has filed a claim for compensation of Rs. 572 before the Office of Special Land Acquisition Officer, Ghaziabad against the land so acquired. However, keeping in view the generally accepted accounting practice, the said claim has not been considered in the books of accounts.

6. Loans and Advances include Rs. 49 (Previous year Rs. 49 ) paid by the Company to Excise authorities on behalf of Sharda Boiron Laboratories Limited, now known as SBL Limited, in respect of excise duty demand of Rs. 68 raised by the District Excise Officer, Ghaziabad, against the Company and Sharda Boiron Laboratories Limited. The Hon''ble Supreme Court of India had concurred with the order of the District Excise Officer, Ghaziabad.

The Company had filed the review petition before Division Bench of the Hon''ble Supreme Court of India, which was also decided against the Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the Company and as per the terms and conditions of the contract executed with them, the recovery proceedings have been initiated by the Company against Sharda Boiron Laboratories Limited for Rs. 49 by invoking the arbitration clause. The matter is pending before Hon''ble High Court of Delhi for the appointment of an arbitrator. The balance amount of Rs. 21 along with interest demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities. During the year 1991-92 the company had received a refund of Rs. 6 pursuant to the decision of Hon''ble Supreme Court in this regard. Necessary adjustments in respect of recovery/refund will be made as per the arbitration proceedings.

7. Amount due to Micro & Small enterprises under MSMED Act, 2006 is Rs.475 (previous year Rs.566). Identification of such enterprises has been made on the basis of their disclosure in correspondences, bills to the effect as mandated for them. There was neither any default nor any delay in payment made to such enterprises, credit terms where of were within period prescribed under statute.

8. Sale of Services Rs. 30 (previous year Rs. 41) relates to hiring charges paid by customers for using Company''s machines.

9. Exchange gain works out to Rs. 574 (Previous Year Rs. 2275) and exchange loss Rs. 994 (Previous year Rs. 2345) and their net impact have been debited to Profit & Loss Account under the head "Finance Cost''!

10. Assets written down/ discarded

11. (a) Figures for the previous year have been rearranged/ regrouped as and when necessary in terms of current year''s grouping.

(b) Figures are rounded off to nearest rupees lacs.


Mar 31, 2012

1. Building constructed on leasehold land included in the value of building shown in Fixed Assets Schedule:

as at March 31, 2012 As at March 31, 2011 Cost/Revalued 18745 17832

Written Down 14718 14220

2. Loans and Advances include Rs.49 (Previous year Rs.49 ) paid by the Company to Excise authorities on behalf of Sharda Boiron Laboratories Limited, now known as SBL Limited, in respect of excise duty demand of Rs. 68 raised by the District Excise Officer, Ghaziabad, against the Company and Sharda Boiron Laboratories Limited. The Hon'ble Supreme Court of India had concurred with the order of the District Excise Officer, Ghaziabad.

The Company had filed the review petition before Division Bench of the Hon'ble Supreme Court of India, which was also decided against the Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron Laboratories Limited in favour of the Company and as per the terms and conditions of the contract executed with them, the recovery proceedings have been initiated by the Company against Sharda Boiron Laboratories Limited for Rs. 49 by invoking the arbitration clause. The matter is pending before Hon'ble High Court of Delhi for the appointment of an arbitrator. The balance amount of Rs. 21 along with interest demanded by the Excise Authorities has been paid directly by Sharda Boiron Laboratories Limited to Excise Authorities. During the year 1991-92 the Company had received a refund of Rs. 6, pursuant to the decision of Hon'ble Supreme Court in this regard. Necessary adjustments in respect of recovery/refund will be made as per the arbitration proceedings.

3. a. Further to para A (3) above, Company has assessed recoverable value of each cash generating units (CGUs) and each intangible assets based on value-in-use method. Such assessment indicated the value in use of corresponding assets higher than corresponding carrying cost of assets thereby ruling out the cause of further arriving at their net-selling- price and exigency of provision against impairment loss.

b. CGUs include Narenderpur plant, Sahibabad plant, each of plants situated at Nashik /Baddi/Jammu, Rudrapur Plant, Silvasa Plants, Pitampur Plant, Kanpur Plant, Alwar Plant, Newai Plant and Jalpaiguri Plant.

c. Annual discount rate considered for arriving at value-in-use of assets of each CGUs is 7.50% i.e the average interest rate of external borrowing plus risk factor @ 2.00 % per annum.

d. Plant & Machineries worth Rs. 50 lacs (previous year Rs. 2 lacs) in terms of written down value have been discarded on the ground of losing utility.

4. Contingent Liabilities :

a. Claims against the Company not acknowledged as debts:

i. In respect of civil suits filed against the Company Rs. 770 (previous year Rs. 772)

ii. In respect of claims by employees Rs. 44 (previous year Rs. 30)

iii. In respect of excise duty disputes pending with various judicial authorities Rs. 7611 (previous year Rs. 5035).

iv. In respect of Sales Tax under appeal Rs. 1070 (previous year Rs. 1202)

v. In respect of Income tax under appeal Rs. 319 (previous year Rs. 940)

vi. In respect of letters of credit Rs. 390 (previous year Rs. 179)

b. Guarantees given:

In respect of Guarantees furnished by the Company Rs. 122303 (previous year Rs. 93172)

c. Information pursuant to AS 29:

Brief particulars of provisions on disputed liabilities:

5. The Company's freehold land situated at Sahibabad measuring about 7.58 acres was acquired by U.P. Government under Land Acquisition Act and the State Government had allotted and given possession of about 4.72 acres of land on lease to the Company in lieu of acquired land. The Company has filed a claim for compensation of Rs. 572 before the Office of Special Land Acquisition Officer, Ghaziabad against the land so acquired. However, keeping in view the generally accepted accounting practice, the said claim has not been considered in the books of accounts.

6. Extra ordinary items relates to investment in H&B Stores limited, a wholly owned subsidiary, written off on account of Honorable High Court Delhi approving investee's application for reduction for share capital against cancellation of 448938127 number of equity shares of Re 1 each not being represented by tangible/ intangible assets.

G. The basis used for determination of expected rate of return is average return on long term investment in Government bonds

H. The estimate of future salary increase take in-to account regular increment, promotional increases and Inflationary consequence over price index.

I. Demographics assumptions take in to account mortality factor as per LIC (1994-96) ultimate criteria, employees and normal retirement age at 58.

J. Particulars on planned assets have been ascertained on the basis of last confirmation from Insurance Company.

K. CY - Current year, PY - Previous year

A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd. And Dabur International Ltd. Rs.29451 and Rs.186 (Rs. 21719 & 241) repectively.

B. Item referred to in 2 above includes Sales to, Dabur International Ltd., Weikfieid International (UAE) Ltd., Naturelle LLC, African Consumer Care Ltd., Asian Consumer Care Pakistan (Pvt) Ltd. Rs. 774, Rs. 354, Rs.1448, Rs. 540, and Rs.805 respectively (Rs. 651, Rs. 421, Rs. 869, Rs. 661, & Rs. 384 respectively).

C. Items reffered to in 5 above includes Interest received on loan given to Dermoviva Skin Essentials Inc. and Dabur International Limited, Rs. 9 and Rs. Nil respectively (Rs. 1 & Rs. 246).

D. Item referred to in 10 above relates to loan given to Dabur International Rs.Nil (26854) and H & B Stores Ltd. Rs.2650 (Rs. 1050).

E. Item referred to in 11 above relates to loan repaid by Dabur International Rs.Nil (26854) and Dermoviva Skin Essentials Inc. Rs.Nil (Rs.390).

F. Items referred to in 15 above includes Gaurantees & Collaterals to Dabur Egypt, Naturelle LLC, Asian Consumer Care Pakistan Ltd., Asian Consumer Care Pvt. Ltd. , Dermoviva Skin Essentials INC., Dabur International Ltd., Dabur Lanka (Pvt) Ltd. and Forum 1 Aviation Ltd. Rs. 3372, Nil, Nil, Nil, Rs. 54940, Rs. 59103, Rs. 3561 & Rs. 714 respectively (Rs.1492, Nil, Nil, Nil, Rs. 45259, Rs. 45036, Nil & Rs. 714), which also includes adjustment due to exchange rate fluctuation.

G. Figures in bracket relate to Previous year.

7. Partner, Holding 1% share of the firm Balsara International, a partnership firm wherein investment of the Company amounted to Rs. 49 (99% share ), resigned during the year, with his share of dues been paid off. Being reduced to the status of sole proprietary firm, it became imperative to consolidate the assets and liabilities therein in Company's account merged herein, in this connection, are net fixed assets Rs. 22, Cash and Bank balances Rs. 2, Advance Tax Rs. 33 and Trade Creditors Rs. 7. Excess of investment over net assets inherited, working out of Rs. 16, has been charged off to General Charges.

8. Exchange gain works out to Rs. 2275 (Previous Year Rs. 93) and exchange loss Rs. 2345 (Previous year Rs. 2027) and their net impact has been debited to Profit & Loss Account under the head "Finance Cost"

ii) Lease rent debited to Profit & Loss account of the year. Rs. 67 (Previous year Rs. 58)

iii) Irrevocable lease agreement relates of flat & vehicle, lease period not exceeding five years in respect of any arrangement.

iv) Figures in bracket relate to previous year.

9. AS 30 , 31 & 32:

a. Pursuant to implementation of AS 30, 31 and 32 all assets and liabilities excluding equity, fixed assets (tangible and intangible), inventories and specific exceptions referred to in accounting policy no. A (4 ) of schedule 23 have come to be recognized within the purview of financial assets and financial liabilities. This also includes off balance sheet exposures in derivative instruments referred to in accounting policy no. A( 4)(d), schedule 23. This read with deferred tax and impairment provision on tangible and intangible assets, marks departure from historic concept of accounts otherwise followed by the Company.

b. Financial assets/liabilities available for sale are of the nature of loans, receivables and payables, (not being receivable/ payable in short term context), call for measurements at amortized value as defined in accounting policy no. 4 (b). Schedule 23 unless amortized value does not materially differ from unamortized value or assets /liabilities are held at floating rate of interest.

Effective rate of interest applicable for arriving at discounted value of relevant liabilities & assets as on date, hereby described as amortized value, has been considered on the basis of appropriate Government Bond rate ruling as on 31-03-2012 i.e. 8.4 %. Such benchmarking of effective rate is attributed to expected cognizance taken by government of the market risk , commodity price index, foreign exchange reserve, inflationary & deflationary impact on internal rates & cyclic / non cyclic fluctuations in fiscal & monetary system for the purpose of arriving at the rate of bond.

c. Implementation of AS 30, 31 & 32 led to change in the treatment of financial assets / liabilities / instruments which during the year added to the opening General reserve , deferred tax liability and investment revaluation reserve by Rs. 76, Rs. 37 & Rs. 78 respectively with consequent rise in current investment, non-current investment by Rs. 65 and Rs. 78 respectively and decline in long term borrowing by Rs. 48.

e. This being the first financial year of implementation of above accounting standard figures of previous years are not applicable for table in 'b' above.

f. Unrealized hedging loss forming part of financial assets of Rs. 53 against off balance sheet exposure appear in the current liabilities in the balance sheet.

g. Value of equity instruments, financial assets not carried at fair value except for those having negligible impact or bearing floating rate of interest Rs. 107 towards non-current investment Rs. 3000 of term deposit with bank maturing little after one year.

h. All financial assets and financial liabilities, not being referred to in above table, being short term in nature and not tradable in primary or secondary market, have been carried at unamortized cost.

i. This being the first year of implementation of AS 30, 31 & 32 question of change in market value, fair value and market risk vis a vis previous year does not occur.

j. The Company has no exposure involving credit risk included inloan or receivable.

k. Rs. 8 of fixed deposit is pledged with government authorities towards excise bond.

l. Outstanding overseas exposure hedged by forward option/ contract against adverse currency fluctuation:

10. Investment in Joint Venture Information (pursuant to AS-27) :

(a) The Company is a party to joint venture agreement controlling the management of Forum 1 Aviation Limited, a domestic jointly controlled corporate entity (JCE) with part of its operation akin to jointly controlled operation, the main object of the JCE being maintenance of aircraft for use of venturers or otherwise. The contributions of venturers are towards capital build up of the JCE and periodic contribution towards cost of maintenance of air craft. Variable component of cost of maintenance is borne by user of the aircraft in proportion to their actual usage and fixed component is shared by all the venturers in proportion to their capital contribution. The participation of the venturers in the affairs of the management of the JCE is through representation in the composition of Board of Directors as agreed in share holder's agreement.

(b) Share of the Company in assets, outside liability, net worth, income and expenses not being accounted for herein works out to Rs. 1011 (Previous year 1219), Rs. 441 (Previous year 553), Rs. 114 (Previous year 173), Rs. 396 (Previous year 422) and Rs. 362 (Previous year 357) respectively in respect of year under audit as per un-audited accounts of the JCE.

(c) Stake of the Company in terms of percentage of total subscribed and paid up capital of JCE is 14.28%. Said amount (Rs. 456) appears under investment head in balance sheet of the Company.

(d) Company's commitment towards revenue expenditure of the JCE amounting to Rs. 439 (Previous year Rs. 452) has been charged to profit and loss account under the head general charges.

(e) The Company has furnished guarantee bond for Rs. 714 (previous year Rs. 714) in respect of borrowing availed by the JCE for acquisition of aircraft which forms part of para B 4 (b)(i) of this schedule.

(f) No income from said investment, unless realized in cash, is recognized in this stand alone account.

11. Trade Payables include Creditors for goods and services.

12. Information pursuant to AS-17 issued by ICAI (Refer Page no. 104).

13. Amount due to Micro & Small enterprises under MSMED Act, 2006 is Rs. 566 (previous year Rs. 172). Identification of such enterprises have been made on the basis of their disclosure in correspondences, bills to the effect as mandated for them. No interest liability has been accrued on account of default in payment to relevant enterprises like previous year.

14. Sale of Services Rs. 41 CY relate to hiring charges paid by customers for using Company's machines.

15. (a) Figures for the previous year have been rearranged/ regrouped as and when necessary in terms of current year's grouping.

(b) Figures are rounded off to nearest rupees lacs.

 
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